Investors Complain About Stock Suspensions as MSCI Reviews A-share Inclusion

(Beijing) – Institutional investors consulted by international index compiler MSCI Inc. on whether to include mainland Chinese stocks in its widely followed Emerging Market Index have said their biggest concern was the arbitrary suspensions to trading that Chinese firms can exercise, sources with knowledge of the matter said.

MSCI decided last June not to add companies listed on Shanghai and Shenzhen stock exchanges to this index, which serves as a benchmark for the pricing of assets worth US$1.5 trillion worldwide, citing problems such as low investment quotas and restraints on capital mobility. It said it was working with the China Securities Regulatory Commission (CSRC) to resolve these issues.